• Industry: Metals & Mining
  • Type: Publication series
  • Date: 8/20/2012

Quarterly Commodity Insights Bulletin: Nickel (Q2 2012) 

KPMG's Global Commodity Insights Bulletin on nickel provides an overview of recent global events and outlook for that commodity, details of major developments and projects, and recent regulatory changes.
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Key insights

  • During Q2 2012, refined nickel prices averaged US$7.73/lb on the London Metal Exchange, down 30 percent from the corresponding quarter last year.
  • Oversupply, in combination with a slow down in consumption due to a weak global economy, is exerting downward pressure on prices.
  • For 2012, global nickel mine production has been forecast to increase by 4 percent, to reach 1.97Mt, as production commences from Xstrata’s Koniambo mine, First Quantum’s Kevitsa mine and other projects continue expanding in Australia and Africa.
  • In 2012, growth in production of refined nickel is expected to be driven mostly by higher production at BHP Billiton’s Nickel West Kwinana refinery.
  • Growth in nickel consumption has slowed because of the effects of sovereign debt crisis in Europe, slow recovery in the U.S. and a slowdown in industrial growth in China.